The Texas Business Outlook Survey by tax and business consultants UHY Advisors measured threats against assets or intellectual property and reputation. UHY’s Jesse Daves says fraud incursions can happen despite detection or prevention controls.
“It’s typically much cheaper if you can prevent something from happening than having to respond to it. But the company has to decide whether they’re going to continue to look back at what has happened, or correct the things today that they know about so they won’t encounter the same problem going forward.”
Daves recommends that companies take risk assessments.
“And then design a system internally that helps them defend, prevent and detect all nature of fraud exposures, whether it’s IT security or whether it’s people that are in accounting functions, and youhave internal controls and processes set up.”
Daves says breaches typically hurt the bottom line, but can become a reputational issue.